HVS Capital Corp (“HVSCC”) is pleased to announce that it completed successful financing assignments for two clients of note:
HVSCC has served as exclusive financial advisor to Rockford Hotels, LLC (“Rockford”) and successfully arranged senior mortgage refinancing on the 81-key Hampton Inn & Suites and 76-key Holiday Inn Express & Suites located in Park City, Utah (“Hotels”). This financing transaction was completed following a prior engagement whereby HVSCC assisted in the negotiation of a term extension with the special servicer, which allowed the Hotels and capital markets to further mature. HVSCC was able to utilize our extensive hospitality relationships in order to structure the most accretive solution for Rockford, which was in the form of a non-recourse senior mortgage with a top-tier life insurance company at an interest rate of 5.05%.
According to Bill Sipple, Managing Director of HVS Capital Corp, these two Hotels represent nearly 100% of the Park City market’s branded select-service hotel segment. Therefore, the Hotels are the ideal option for nearly all budget-conscious leisure resort visitors to Park City who want a predictable hotel experience.
“This was an exceptional financing solution for Rockford, as they locked into a low interest rate for 10-years,” says Sipple. “In addition, the loan was free of the typical cash management or hard lockbox account structure, which allows ownership to more easily manage the intensive day-to-day hotel operations.”
Additionally, HVSCC HVS Capital Corp successfully arranged an on-book, non-recourse $6.5 million, first mortgage financing of a 121-room hotel located in Jacksonville, North Carolina; home to the Marine Corp’s Camp Lejeune.
The purpose of the financing was to retire the maturing construction loan and provide cash out to reimburse the general contractor partner for deferred development fees. The Jacksonville Suburban Extended Stay is an attractive, well designed, four-story building and represents the latest upgraded hotel prototype which includes an outdoor swimming pool and picnic area. This property offers comfortable guest rooms, with a tasteful decor and modern furnishings that include a fully equipped kitchen.
“The performance of this all-suite hotel has been exceptional since opening,” Sipple further comments. “The Suburban Extended Stay ADR has been able to quickly ramp up to nearly 100% penetration, while also achieving more than its fair share of occupancy. It is expected that the Hotel will continue to capture more market share given the exceptional product and location.” The property is adjacent to Camp Lejeune, one of the country’s largest and most active military bases. The military has continued to provide consistent sources of lodging demand for Jacksonville market. Jacksonville’s hotel occupancy levels have remained stable in the 70% - 80% range in recent years.
The Suburban Extended Stay hotel is owned by an established and long-time Jacksonville businessmen and third party managed.
(photography available upon request)